Bharat Ltd. was incorporated with a capital of ₹ 2,00,000 divided into shares of ₹ 10 each. 2,000 shares were offered for subscription and out of these, 1,800 shares were applied for and allotted. ₹ 3 per share (including ₹ 1 premium) was payable on application, ₹ 4 per share (including ₹ 1 premium) on allotment, ₹ 2 per share on first call and ₹ 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet.
Authorised Capital 20,000 shares of ₹ 10 each
Issued Capital 2,000 shares
Applied 1,800 shares
Payable as:
Application
₹
3
(2+1)
Allotment
₹
4
(3+1)
First Call
₹
2
Final Call
₹
3
12
(10+2)
Books of Bharat Limited
Journal
Date
Particulars
L.F.
Debit
Amount
(₹)
Credit
Amount
(₹)
Bank A/c
Dr.
5,400
To Share Application A/c
5,400
(Application money received for 1,800 shares at Rs 3 per shares)
Share Application A/c
Dr.
5,400
To Share Capital A/c
3,600
To Securities Premium A/c
1,800
(Application money of 1,800 share transferred to Share Capital at Rs 2 per share and Securities Premium Re 1 per share)
Share Allotment A/c
Dr.
7,200
To Share Capital A/c
5,400
To Securities Premium A/c
1,800
(Share allotment due on 1,800 shares at Rs 4 per share including Re 1 securities premium)
Bank A/c
Dr.
7,200
To Share Allotment A/c
7,200
(Share Allotment money received)
Share First Call A/c
Dr.
3,600
To Share Capital A/c
3,600
(Share first call due on 1,800 shares at Rs 2 per shares)
Bank A/c
Dr.
3,600
To Share First Call A/c
3,600
(Share first call money received)
Share Final Call A/c
Dr.
5,400
To Share Capital A/c
5,400
(Share final call due on 1,800 shares at Rs 3 per share)
Bank A/c
5,400
To Share Final Call A/c
Dr.
5,400
(Share final call money received)
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
Bharat Limited
An extract of Balance Sheet
Particulars
Note No.
Amount
(₹)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital
1
18,000
NOTES TO ACCOUNTS
Note No.
Particulars
Amount
(₹)
1
Share Capital
Authorised Share Capital
20,000 shares of Rs 10 each
2,00,000
Issued Share Capital
2,000 shares of Rs 10 each
20,000
Subscribed, Called-up and Paid-up Share Capital
1,800 shares of Rs 10 each
18,000
Authorised Capital 20,000 shares of ₹ 10 each
Issued Capital 2,000 shares
Applied 1,800 shares
|
Payable as: |
|
|
|
|
Application |
₹ |
3 |
(2+1) |
|
Allotment |
₹ |
4 |
(3+1) |
|
First Call |
₹ |
2 |
|
|
Final Call |
₹ |
3 |
|
|
|
|
12 |
(10+2) |
|
Books of Bharat Limited Journal |
||||||
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
5,400 |
|
|
|
|
To Share Application A/c |
|
|
5,400 |
||
|
|
(Application money received for 1,800 shares at Rs 3 per shares) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Application A/c |
Dr. |
|
5,400 |
|
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
|
To Securities Premium A/c |
|
|
1,800 |
||
|
|
(Application money of 1,800 share transferred to Share Capital at Rs 2 per share and Securities Premium Re 1 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Allotment A/c |
Dr. |
|
7,200 |
|
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
|
To Securities Premium A/c |
|
|
1,800 |
||
|
|
(Share allotment due on 1,800 shares at Rs 4 per share including Re 1 securities premium) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
7,200 |
|
|
|
|
To Share Allotment A/c |
|
|
7,200 |
||
|
|
(Share Allotment money received) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share First Call A/c |
Dr. |
|
3,600 |
|
|
|
|
To Share Capital A/c |
|
|
3,600 |
||
|
|
(Share first call due on 1,800 shares at Rs 2 per shares) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
Dr. |
|
3,600 |
|
|
|
|
To Share First Call A/c |
|
|
3,600 |
||
|
|
(Share first call money received) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Share Final Call A/c |
Dr. |
|
5,400 |
|
|
|
|
To Share Capital A/c |
|
|
5,400 |
||
|
|
(Share final call due on 1,800 shares at Rs 3 per share) |
|
|
|
||
|
|
|
|
|
|
||
|
|
Bank A/c |
|
5,400 |
|
||
|
|
To Share Final Call A/c |
Dr. |
|
|
5,400 |
|
|
|
(Share final call money received) |
|
|
|
||
|
|
|
|
|
|
||
As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows.
|
Bharat Limited |
||
|
An extract of Balance Sheet |
||
|
Particulars |
Note No. |
Amount (₹) |
|
I. Equity and Liabilities |
|
|
|
1. Shareholders’ Funds |
|
|
|
a. Share Capital |
1 |
18,000 |
|
|
||
NOTES TO ACCOUNTS
|
Note No. |
Particulars |
Amount (₹) |
|
1 |
Share Capital |
|
|
|
Authorised Share Capital |
|
|
|
20,000 shares of Rs 10 each |
2,00,000 |
|
|
Issued Share Capital |
|
|
|
2,000 shares of Rs 10 each |
20,000 |
|
|
Subscribed, Called-up and Paid-up Share Capital |
|
|
|
1,800 shares of Rs 10 each |
18,000 |
|
|
|
|
